News

Daily Newsletter - 3 October 2019

Summary

FIC (1)

How can companies grow through corporate governance?

Ramona Jurubita, FIC President and country managing partner KPMG, stated that the central pillars of corporate governance are the number of board members (the more members, the greater the risk that some of them will not be able to express their opinion) diversity and collective knowledge in the board (an area that it can develop, because there are constant formulas for diversity) the independence of the company, the succession of the management, but also of the board members, who have a critical vision on it.

"From Family Business To Corporation"

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Macroeconomic News (4)

Government slashes diesel subsidies

The Cabinet decided on Wednesday to reduce the value of subsidies for diesel used in farming activities. On the other hand, the Cabinet approved a EUR 64 million increase in subsidies for sheep and goat farming.

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Industry technically in recession

"The economic growth slowdown of 2019 and 2020 is the result of the consumption growth potential depletion, coupled with falling foreign demand," notes a study released by Ionut Dumitru, Chief-Economist of Raiffeisen Bank, on Wednesday. The national industry is already in technical recession, following a fresh contraction in the second quarter.

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Industrial production prices up

The industrial production prices increased by 3.3% in August, compared to the corresponding month of 2018, according to the National Statistics Institute (INS). The growth rate reported for July was 4.2%.

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Inflation strike regardless of government statements

Romania is facing an inflation rate that's twice above the optimum figure, regardless of whether the authorities want this or not, according to Adrian Vasilescu, a strategy adviser with the National Bank of Romania (BNR). "Inflation strikes regardless of the government's statements, of what companies say, of what the population wants," said Vasilescu at the Upgrade Romania conference.

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Financial News (2)

BNR foreign currency reserves down slightly

The National Bank of Romania (BNR) announced that its foreign currency reserves amounted to EUR 35.42 billion at the end of September, down from EUR 35.61 billion at the end of August. The total reserves managed by BNR reached EUR 39.96 billion.

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OTP added RON 320 million to equity of Romanian subsidiary

OTP, the biggest banking group in Hungary, has added RON 320 million to the equity of its Romanian subsidiary. This was the biggest equity boost for the local market in August.

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Investment News (1)

Delgaz Grid secured more EU funds

Delgaz Grid, a distribution company controlled by German group E.ON, announced on Wednesday that it had secured more European funds for the modernization of the transformer stations in Husi, Stanilesti, Vetrisoaia, Falciu and Murgeni. The modernization project will cost a total of EUR 31 million.

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Politics (2)

CCR issues report

President Klaus Iohannis can no longer postpone the appointment of the interim ministers nominated by the prime minister, according to the report on the Constitutional Court's ruling of September 18. On the other hand, Prime Minister Dancila must go before Parliament and ask for its approval for a cabinet that does not include ALDE, but was not given a firm deadline.

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Parliament to vote on motion of censure next Thursday

Marcel Ciolacu, President of the Chamber of Deputies, announced that the Permanent Bureaus would hold a new meeting in order to vote on a proposal to bring the motion of censure to the floor for the reading on Thursday and vote on it a week after the reading. The joint session of the Parliament was suspended after the daily agenda was rejected and the motion was not read.

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Social (1)

City halls told to install selective waste collection bins

The local authorities will be forced to finance, either directly or through waste collection companies, the program for installing selective waste collection bins in all schools. The bins must be properly color coded and marked. The financial impact on the local budgets could reach EUR 6 million.

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